Britain's current account deficit hit a record high in the third quarter, official data showed today.
According to the Office for National Statistics, the increase was fuelled by foreign companies enjoying big profits and insurance claims arising from Hurricane Katrina.
The ONS said the current account gap widened to £10.2 billion from £1.36 billion pounds in the second quarter. That was the highest cash deficit since records began in 1955.
That is also equivalent to 3.4 per cent of GDP, the highest since the fourth quarter of 2000.
The main reason for the deterioration was a higher insurance claims arising from Hurricane Katrina, foreign companies, particularly oil firms, enjoying bigger profits, and because of oil imports.
Some of these effects may be unwound in the fourth quarter.
Separately, the ONS left GDP growth for the third quarter unrevised at up 0.4 per cent on the quarter, as expected.